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Johnson Controls International Insiders Sell US$6.2m Of Stock, Possibly Signalling Caution

Simply Wall St ·  11/29/2023 22:52

Many Johnson Controls International plc (NYSE:JCI) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Johnson Controls International

The Last 12 Months Of Insider Transactions At Johnson Controls International

In the last twelve months, the biggest single sale by an insider was when the insider, Michael Ellis, sold US$3.1m worth of shares at a price of US$66.55 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$52.27. So it may not tell us anything about how insiders feel about the current share price.

In the last year Johnson Controls International insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:JCI Insider Trading Volume November 29th 2023

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Johnson Controls International

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Johnson Controls International insiders own 0.3% of the company, currently worth about US$104m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Johnson Controls International Insiders?

The fact that there have been no Johnson Controls International insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Johnson Controls International insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Johnson Controls International. At Simply Wall St, we found 3 warning signs for Johnson Controls International that deserve your attention before buying any shares.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

The above content is for informational or educational purposes only and does not constitute any investment advice related to Futu. Although we strive to ensure the truthfulness, accuracy, and originality of all such content, we cannot guarantee it.
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